GIC invests our CPF money in risky Chinese P2P lending platform

Reuters reported (2 Aug) that Chinese P2P lending platform Dianrong has raised US$220 million from our GIC and other investors. GIC, of course, helps to invest our CPF money all over the world.

Dianrong said it will use the funds to automate some of its new branches across China, for research and development as well as any potential acquisitions. The person who founded Dianrong is also behind another online lending company, which attracted US$207 million in a previous fundraising round in 2015.

Dianrong recently launched a partnership in Hong Kong to offer a marketplace for Asian investors to buy into U.S. consumer loans, and in July, it bought the asset origination business of Shanghai-based Quark Finance to increase the volume of loans in its platform.

P2P lending is a risky business

P2P lending is a risky business. According to a FT report (31 Jul), China is cracking down on the P2P lending industry.

P2P lending, in which borrowers are matched with investors via online platforms, has mushroomed in the past five years, with China boasting more than 2,100 such platforms, but so too have scandals, reported FT. Many of the P2P players are also winding up their business as borrowers run away resulting in bad loans.

For example, Hongling Capital admitted that “P2P lending is not what we are good at, neither is it something we see potential in. This [P2P lending] business of ours would always be cleared out eventually — it’s only a matter of time.”

Hongling has some US$2.6bn in loans. Analysts said that Hongling’s long-established business model of targeting high-value borrowings has become increasingly incompatible with regulatory expectations.

Another P2P casualty is Lufax, one of China’s largest P2P lenders and online wealth managers. It suffered a virtual run on funds after a screenshot on social media claimed it was being singled out for punishment under the new Chinese crack down.

Mainstream players like Guo Guangchang, chairman of Fosun Group, criticised the P2P market as “basically a scam” while president of Ping An Insurance remarked that most P2P lenders were “fakes” and that most of them would not survive.

The risk is high as China’s economy slows down with more borrowers defaulting. According to an estimate, 3,795 P2P platforms have collapsed since 2011. Chinese police last year arrested more than 20 people associated with “a complete Ponzi scheme” that took more than US$7.6bn from investors. A few months later, another struggling P2P lender resorted to offering to repay its investors in baijiu, the popular Chinese liquor, after its chairman was detained.


*Facebook post by We want Minister Grace Fu to resign.

 

 

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22 Responses to “GIC invests our CPF money in risky Chinese P2P lending platform”

  • my $8 heart bypass:

    This time around, it’ll be a duplication of the Lehman Bros – Ah Tiong Bros fiasco.
    Chinese are crooks, Sinkies are too stupid and naive to be lending money to them.
    Just how many of the Chinese stocks after listing here, have just closed shop after milking money from the daft Sinkies here.
    How many bad loans have been written off over there ???

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  • BuyMeBakKutTeh:

    Chinese v smart. Our scholar sinkie CEO can’t match at all.

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  • Already Lost Some Big Monies!:

    This Chinese P2P lending platform is NOTHING!

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  • Pap's masterplan:

    Good lord, there they go again.
    Gambling with our cpf monies…errr pardon, i meant investing our cpf monies…with their eyes closed.
    Playing Eenie meennie mainnie mooo?

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  • oxygen:

    CHINA HAS NO BANKRUPTCY LAW and borrowers in default can just easily change name identity and relocate to unknown addresses, as far as I know.

    So a judgement decision in favor of the aggrieved creditor is a pyrrhic victory – your swagger debtor just laugh at you stupid.

    I think it is “safer” bet if our CPF is invested in black jack table in the casino – at least there is some odd of retrieving a little insignificant back.

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  • Evil Tyrant and PAP Terror:

    $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$

    This fxxker … spend his life time … drawings and drafting the late old man’s will !!!

    $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$

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  • Some escaped karma:

    Wa, Jia Buay Liao ah!
    I think his wealth CAN pass on to three generations down his family tree.

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  • CRONYISM is what?:

    Is his parents linked to familee or former mp?

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  • LIONS:

    they think they can take our money and throw it at foreigners to please them.

    this nonchalance is brought about by LACK OF ACCOUNTABILITY N TRANSPARENCY.

    stop monkeying around!

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  • Nobody invests wth eyes closed:

    Pap's masterplan:
    Good lord, there they go again.

    Gambling with our cpf monies…errr pardon, i meant investing our cpf monies…with their eyes closed.

    Nobody invests with their eyes closed.

    The investment game is a zero sum game whereby when one wins, the other loses and vice versa.

    It is about knowing what cards to hold and when to hold them, and what cards to throw and when to throw them.

    It is about you being able to outwit others, or others will outwit you and you will be left carrying the babe. Alas, ours have been outwitted by others and have been left carrying the babe time and again.

    They have been buying when the price is high (when others are only too happy to offload to them) and they sell after the price has plummeted (after everyone has jumped ship except them).

    That does not stop them from paying themselves the highest multimillion-dollar public servant salaries and absurd bonuses in the world with public funds claiming themselves to be the most talented and intelligent in the world because they were top scholars when they were 18 years old, the argument of which itself is suspect on their ability to think.

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  • Dumb Princeling Investor:

    Private lending is the riskiest business in China, this is common knowledge and plain common sense even to outsider. What is our GIC thinking? Their stupidity is plain amazing. Too much easy money taken from dafts?

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  • Israel Generals dun play tikam:

    Nobody invests wth eyes closed:

    That does not stop them from paying themselves the highest multimillion-dollar public servant salaries and absurd bonuses in the world with public funds claiming themselves to be the most talented and intelligent in the world because they were top scholars when they were 18 years old, the argument of which itself is suspect on their ability to think.

    Their argument for paying themselves multimillion-dollar salaries have been based largely on their academic grades and more specifically, on the scholarships they won when they were 18 years old for they have really not proven themselves outside the Civil Service where their worth have been gauged or assessed by their same like-minded superiors in the Civil Service who measure themselves or their own worth on the same criteria of, yes, academic grades.

    Virtually none of them have proven their true ability when measured by the yardsticks of free market competition where you either (have to) outwit your competition, or your competition will outwit you.

    Even by the yardsticks of public service, how will they fair if they were assessed by the standards of the military or the public service in the US, Europe or Israel? Would they have been promoted to Generals and Admirals? Or to Corporals and Sergeants?

    (By the way, Israeli Generals don’t meddle in the International bourses tikam-tikam. They are real Generals, not cable-car rescue firefighters.)

    After the debate on Ministerial salaries, when critics pointed out that they were mostly Civil Servants not having proven themselves or their worth in the competitive private sector for did not earn those salaries in the private sector, they have since been proactively trying to attract those who made it in the private sector to demonstrate otherwise, such as pulling in Shanmugam and Ng Eng Hen, but without much success for anyone else.

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  • George Yeo lands job at Yahoo?:

    Israel Generals dun play tikam:

    Virtually none of them have proven their true ability when measured by the yardsticks of free market competition where you either (have to) outwit your competition, or your competition will outwit you.

    Google triumphed because they were able to outwit Yahoo and others.

    Will Google employ any PAP scholar Civil Servant?

    Will Google employ George Yeo?

    Or will Yahoo employ him to resurrect them?

    Remember, PAP leaders claim themselves to be the world’s top talents. Could he use the same trick to turn Yahoo round like they did with SG? By filling the ranks with cheaper imports?

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  • Top in Maths and Science:

    George Yeo lands job at Yahoo?: Google triumphed because they were able to outwit Yahoo and others.

    Will Google employ any PAP scholar Civil Servant?

    Will Google employ George Yeo?

    Or will Yahoo employ him to resurrect them?

    Remember, PAP leaders claim themselves to be the world’s top talents. Could he use the same trick to turn Yahoo round like they did with SG? By filling the ranks with cheaper imports?

    Is Academic result aka scholar equal to Realworld performance?

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  • Lum Juice:

    I look at his face and sigh

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  • MarBowling:

    At first I thought I saw ex-MND Minister Wee Toon Boon in the above picture. The MF was caught with his pants down trying to makan money through corruption. Lee Kayu sent him packing.

    Wah LAN, this Bugger is more powderful than Wee. Most likely LOONGER and Bigger pair of pants oops hands!

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  • Lee Gan Yew:

    Just look at his face.

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  • Self Serving White Monkeys:

    Very simple logic. If a Company is doing well, no need to get GIC involved. Even if GIC wants to get in, they may not be interested. If Company is performing badly, they will welcome the HolyJinx with open arms n legs. Why the idiot wants to buy in? They make money for themselves. We die, not their problem. There is no Accountability as all control points are monitored by Ka Ki Lang.

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  • Free funding by?:

    When a high ranking plp is gracefully retired with an exobitant pension plus a multimillion $ position in an controlling company or institution, the plp was funded free to get experience for the next phase of exile or complete extinction. When one such HRPlP stopped bonus payout to nepotic favourite for lossing near billions in bad investment, he brought on the rage of the emperorismo & ordered over HRPlP to award a substantial bonus payout easily generously sustaining a worker for 10 years on the rationale that it has to gain experience despite of his earlier retort to media that if itbis so good that the mgemt appoints it to such high position without experience why should he stopped it just becos itbis his fave. Of plpism and nepoticist are conflict of interest as Indranee has said it is not an issue with good professionals and nepotic genes are always the greatest.
    So the freevfunding goes on even multimillion $ appointment. So daft Sinkies why kpkb, noticeably a fave phrase learnt by the statue in Cambridge College accessible to SIN tourists to gain inspiration as Cambdons jested.
    See PAP thinks there is unhappiness among their concocted minority Singaporeans but the whole Parliament is filled with Papists. If there is any dissatisfaction, it is they who brought it about and by their claimed seilf checks and balance but alas no it is the citizens and hence GRC and now racial presidency was inplanted. So free funding free object of blames are the order of papist days anfd at billions of $ of payout for such kalan kabo play play.
    God forgive those who sworn on his head
    . Good grief as Peanut(pl no confuse with Mrs Emeritus) would say when frus.

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  • Risky Business:

    P2P is a risky business.
    Better to put the money to improve our health system that need to be improved for the ordinary citizens.
    Now take too long to see a Specialist or even for a hospital bed !!!
    Also too costly..

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  • ah tee:

    has been milking from those who rep Singapore to tie up with such organisation so they have into their own pocket and to blame market when the down fall.
    This is where local knew the loop hole of milking from stupid fool and classified this as investment of high return but no analysis .

    lau cha bo spend husband defense……

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  • Bad Boy:

    http://www.iimedia.cn/53890.html
    郎咸平又被围堵了!盘点那些他站过台的不靠谱公司

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